Firearms Manufacturer Stocks Surge After Attack in Las Vegas!

Not even 24 hours has passed since the horrific attack in Las Vegas last night, but already things are on the move in the economy in response. Just like what has happened after many other mass shootings, the stocks of major firearms manufacturers’ is going up in response to the attack.

After the tragic attacks in Newtown, Connecticut, and Orlando, Florida, firearms sales skyrocketed. Especially after Newtown, there was a “panic-buy” where AR-style rifle prices went through the roof as supplies dwindled and manufacturers struggled to keep up with the demand. Americans were afraid of the government banning such long guns, and they want to get them while still feasible.

After this attack, the story is unfortunately the same. While we mourn those who have been killed and wounded, and show compassion on those who lost loved ones, at some point more Americans will begin to fear that the government will make possession or purchase of AR-style rifles either more difficult or more restricted.

Because of that, they buy more, and manufacturers’ stocks go up in value, as MarketWatch reports.

American Outdoor’s stock had tumbled 46% since the election through Friday, and closed at a 2 ½-year low of $13.31 as recently as Sept. 11. Sturm, Ruger shares had shed 20% since the election, and had also hit a roughly 2 ½-year low in September. Vista Outdoor’s stock, which hit a record low in April, had plunged 40% since the election.

For some perspective, the S&P 500 Index has increased 18% since the election last year. What that shows is that the firearms market demand had corrected since the election.

In the months leading up to November 2016, more guns were sold in each month than at any point in history. Each month broke a record in the number of firearms sales right up until November. Then Donald Trump won, and the hype died down. Things started to go back to normal demand levels, and stocks fell accordingly.

But this tragedy will affect the firearms market, especially given the incredibly breathtaking scope of the carnage. It’s truly difficult to comprehend such mass murder and chaos, and in the immediate aftermath people will have all sorts of emotional reactions to it.

The investigation is still ongoing, but already there is a market impact. If anything, that goes to show just how quickly our world moves today. In spite of this, let us not gloss over the horrendous nature of this as time goes on.

TOGETHER WE WILL MAKE AMERICA GREAT AGAIN!

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Gary Maher has been writing seriously since 2010 and professionally since 2013. He has written professionally for three newspapers and seven websites. He also writes short stories and novels on the side. He maintains a staunch Republican mindset and believes the country is in desperate need of a conservative overhaul, and helped get Donald Trump elected President in 2016.